Reforms needed to support benefit claimants in rented housing

RRESPONDING
to an announcement from the Government that it plans to work with stakeholders
to address the issue of ‘No DSS’ adverts in the private rented sector, John
Stewart, Policy Manager for the Residential Landlords Association said:

“Landlords
should not refuse someone solely because they are on benefits, and should
consider prospective tenants on a case by case basis. But with growing numbers
of benefit claimants now reliant on the private rented sector we need to do
more to give tenants and landlords greater confidence in the benefits system.

“This
means giving all tenants the right to choose if they want to have the housing
element of Universal Credit paid directly to their landlord, working with bank
lenders to remove mortgage terms that prevent landlords renting to benefit
claimants and ending the Local Housing Allowance freeze which has meant
benefits bear little resemblance to rents.”

RLA
research has found that the average amount owed by Universal Credit tenants in
rent arrears increased by half from just over £1,600 in 2017 to almost £2,400
in 2018.

Around
two thirds of the largest buy-to-let mortgage lenders do not allow landlords to
rent property to tenants receiving housing benefit.

Research
by Manchester Metropolitan University for the RLA has found that 53 per cent of
landlords reported that the gap between the Local Housing Allowance and local
market rent was more than £50 a month. Almost 25% said the gap was over £100 a
month.

About the author

Victoria Barker

Victoria is the Communications Officer for the RLA.

She is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and media review, and creating social media content. She also contributes to our members magazine, Residential Property Investor.

About Author

Victoria Barker

Victoria is the Communications Officer for the RLA.

She is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and media review, and creating social media content. She also contributes to our members magazine, Residential Property Investor.